Question
X Company's 2019 budgeted overhead cost function was C=$9.50X + $229,400, where X is the number of units produced. The following information is also available
X Company's 2019 budgeted overhead cost function was C=$9.50X + $229,400, where X is the number of units produced. The following information is also available for 2019:
| Master | Actual |
| Budget | Results |
Production | 10,100units | 13,700units |
Total variable costs | $95,950 | $166,773 |
Total fixed costs | $229,400 | $232,934 |
1. What was the total overhead static budget for 2019?
A: $130,150 | B: $325,350 | C: $328,884 | D: $359,550 | E: $363,084 | F: $399,707 |
2. What was the total overhead flexible budget variance for 2019 [a positive number means a favorable variance and a negative number means an unfavorable variance]?
A: $-74,357 | B: $-70,823 | C: $-48,188 | D: $-40,157 | E: $-36,623 | F: $-32,126 |
3. X Company prepares monthly financial statements. On September 6, its accountant made an entry that resulted in a $60,000 increase in Cash and a $60,000 decrease in Accounts Receivable. Which of the following transactions is consistent with this entry? X Company sold merchandise to customers on account for $60,000. received $60,000 from a new investor. paid $60,000 to a supplier from whom the firm had previously bought merchandise on account. received $60,000 from a customer who bought merchandise with cash. received $60,000 from a customer who had previously bought merchandise on account. borrowed $60,000 from a bank and signed a
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